Commodity Chain with Map of Chain - Research Paper Example

Some of the production factors considered when evaluating a business process entails the availability of raw materials and all the factors that surround the raw materials like the required transport charges and the nearness to the raw materials source. On the other hand, the consumption process has to be analyzed to evaluate the various factors that influence the market pattern of the products. This brings us to the juncture of studying the production commodity chain (Bair 46). Commodity Chain of China’s Honey This commodity chain is focusing on the production of Chinese honey, its export process and all the social, economical and the political aspect surrounding it (Gereffi 75).

Chinese honey is produced in the central Guangzhou province. Guangzhou province is the second largest and most populated province in the People’s Republic of China. The leading economic activity in this region is crop production. Guangzhou province is also the leading producer of Chinese honey that is illegally transported to the US through India. The exact location of honey production in Guangzhou province is the Xue Xing County. The residents in this region have been practicing honey production as their major cultural activity (Gereffi 88).

Bee keeping in this region is facilitated by the environmental conditions, which include availability of water from the great Xue Xing River. Since honey production evolved into a lucrative business in China, many venture capitalists have invested in mass production honey exercises. Honey production proved to respond to the economic needs of the local population. Mass production of honey in this region has maintained the cultural practices of the local community (Stringer and Heron 241). The province is also known to attract political attention in the country because of the population and the economic strength attributed to honey exports.

The local workers benefits from the wages they collect and most of them are known to be practicing small scale bee farming and selling the honey to large companies for processing. Therefore, honey production is a social as well as an economic activity in this Xue Xing County (Hu-DeHart 76). Honey production is encouraged by the local authorities because of the economic viability of the honey industry. Mass honey production is carried out by large established local companies in Xue Xing County.

The largest producer of honey is the Xue Xing Honey Company. Honey production and harvesting is carried out by local casual workers employed who are the local residents. Upon maturity, honey is harvested and taken to the company’s processing facilities near the harvesting sites where they are processed and packed in large quantities. After packing and branding, the honey is loaded into train containers and transported to New Delhi, India. India allows the importation of Chinese honey into their country.

The honey imported to India is meant for local human consumption and other industrial uses of honey. However, the price of honey in India is not high compared to the market in Australia and America. Therefore, the honey barons from China would want to secure another lucrative market in the international platform. The labeling process is suspected to be carried out in Xue Xing subordinate company in India’s New Delhi (Hu-DeHart 34). The honey is removed from the containers and repacked into small quantity cans meant for export product.

This process of labeling is not authentic and is normally carried out